Tissue Regenix Group

Executing the plan

Update | 3 September 2018

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Tissue Regenix’s H118 results provide evidence of the progress being made in the commercialisation of its dCELL and BioRinse portfolios. The period saw a large increase in sales (+315%), while reducing loss at the EBITDA level by 32%. There were several other notable achievements, which should help Tissue Regenix achieve breakeven in 2020, including strategic partnerships with Arthrex and ARMS Medical, and the transfer of DermaPure manufacturing in the US to the CellRight facility. We maintain our valuation of the company at £245m, or 20.9p a share.

Year-end: December201620172018E2019E
Sales (£m)
Adj. PBT (£m)(10.9)(9.7)(9.7)(7.1)
Net Income (£m)(9.9)(9.4)(9.0)(6.6)
Adj. EPS (p)(1.29)(1.00)(0.77)(0.57)
Cash (£m)
EBITDA (£m)(10.8)(10.1)(8.4)(5.7)
Source: Trinity Delta Note: Adjusted numbers exclude share-based payments and exceptionals.
  • Strong growth on all fronts  Tissue Regenix has delivered strong growth in H118, with sales increasing from £1.3m in H117 to £5.6m. Much of the increase is due to the contribution of CellRight (£3.2m), which was acquired in August 2017. Having said that, all divisions grew strongly during the period with sales of BioSurgery up 96% (at constant exchange rates) to £1.5m and GBM-V by 70% to £0.9m. This lead to the loss at the EBITDA level falling from £5.1m to £3.5m.
  • Integration of CellRight well on track  Tissue Regenix is advancing well with the integration of CellRight. It has already transferred production of DermaPure in the US to the CellRight facility at St Antonio, and is developing a consistent corporate culture across the group. Notably, CellRight has delivered double-digit sales growth during the integration process, and it formed a strategic collaboration with Arthrex.
  • Foundations laid for sustained growth  In line with the revised corporate strategy of new management, Tissue Regenix formed strategic partnerships with Arthrex and Pennine Healthcare for the BioRinse portfolio, and ARMS Medical for DermaPure. The GPO (General Purchasing Organisation) Premier Inc awarded a further three-year contract to the company, and an HTA License was granted to allow the importation of BioRinse products into the UK. Also, SurgiPure XD is ready for imminent launch in the US, and OrthoPure is on track to be launched in Europe in H119. All these initiatives should drive strong revenue growth for Tissue Regenix.
  • Valuation unchanged at 20.9p/share  Valuation unchanged at 20.9p/share Our DCF valuation of Tissue Regenix remains at £245m (20.9p a share). We also make no changes to our estimates to be conservative. Tissue Regenix’s strong growth has led to some capacity constraints and it will have benefited from the effect of stocking following the formation of the various strategic partnerships during H118. The company had a cash position of £12.2m at H118 and reiterated that it is committed to achieve breakeven in 2020.


3 September 2018

Market Cap£103m
Enterprise Value£90.3m
Shares in issue1,171m
12 month range5.6-13.3p
Free float14.4%
Primary exchangeAIM London
Other exchangesN/A
Company CodeTRX
Corporate clientYes

Company description

Tissue Regenix is a regenerative medicine company with a portfolio of soft tissue and bone products and two proprietary platforms, dCELL, and BioRinse. Applications include wound care/general surgery, orthopaedics, sports medicine, and dental care. Commercialisation of the leading products are underway.


Mick Cooper PhD
+44 20 3637 5042

Lala Gregorek
+44 20 3637 5043

Exhibit 1: Summary of financials
Source: Tissue Regenix, Trinity Delta  Note: Adjusted numbers exclude exceptionals. * FY15 refers to the 12 months ending on 31 January 2016; **FY16 refers to the 11 months ending on 31 December 2016. The short-term debt in FY19 and FY20 are indicative of the company’s funding requirement.


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